India’s gems and jewellery exports declined 12.66% year-on-year to $3.05 billion in February 2024. On the other hand, imports witnessed a marginal increase of 1.12% to $2.26 billion. However, there’s a bright spot—gold jewellery exports surged 16.43% to $821.55 million. The data highlights a widening trade gap in the gems and jewellery sector.

According to the Gem Jewellery Export Promotion Council (GJEPC) report, “The overall gross exports of Gems & Jewellery at US$ 3046.84 million (Rs 25274.640 crores) in the month of FEB 2024 is showing a decline of 12.66% (-12.34% in Rs. term) as compared to US$ 3488.51 million (Rs 28832.86 crores) for the same period the previous year.”

“On the other hand, the overall gross imports of Gems & Jewellery at $2.26 billion (Rs 18,765.3 crore) in February 2024 represent a growth of 1.12% (1.6% in Rs term) as compared to $2.23 billion (Rs 18,470.62 crore) for the same period the previous year.”

Besides, the total gross export of Gold Jewellery, at $821.55 million (Rs 6,815.65 crore) in February, showed a growth of 16.43% (16.91% in Rs terms) compared with $705.61 million (Rs 5,829.65 crore) the previous year.

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Colin Shah, MD, Kama Jewelry on ‘Jewellery Export & Import February 2024 Data’ said, “Indian gems and jewellery exports have been on a continuous downtrend for almost a year now. While the major influence of this remains global political unrest, the ripple effect can be seen through other triggers, including the rise in export duties, rising prices of precious metals, and, on the contrary, low-end demand in the overall international markets due to weak purchasing power.”

While the mainstream industry is experiencing a sluggish phase, it is notable that even lab-grown diamonds have not grown as expected and have shown a small rise of 2.90% in exports.

“It is interesting to see the rise in overall imports of gems and jewellery, showcasing a robust demand in the domestic market. This demand is here to stay and will also not be impacted in the long run. We owe it to the economic stability in the country, which leads to higher disposable incomes and purchasing power, along with the sentimental value of precious metals. Overall, with the plans of the US Fed for a potential rate cut, the exports are expected to witness a gradual but steady rise as we enter in the second of 2024,” said Shah.